Asset-based Bizjet Financier Sees Strong Growth

Business aircraft financing provider Shearwater Aero Capital reported strong growth in 2018. Founded in 2014, the company secured 60 percent of its business last year, as its portfolio surpassed $100 million in aircraft value for the first time. It has provided loans worth $65 million for 15 business aircraft globally.

Though the Atlanta-based company can provide funding for all types of private airplanes, it has thus far focused on developing markets and older jets. Last year, its average loan size was approximately $7 million, ranging from $1.5 million for a Hawker 400XP to $15 million for a Bombardier Global 5000. Those transactions averaged a 65 percent loan-to-value.

“We are enjoying very strong growth, and this reflects a number of factors,” explained Shearwater managing partner Chris Miller, "such as the deep expertise we have in business aviation finance within our team, global growth in the number of aircraft, and the lack of lenders offering true asset-backed financing options for business aircraft purchasers, particularly in emerging markets.”

To support that growth, the company, which also provides appraisal and valuation services, is raising additional funding from a variety of sources. It is currently providing its private investors a return on investment of better than 13 percent, the company claimed.